Updated almost 7 years ago on . Most recent reply
Fix & flip in a market where prices are beginning to fall
In what instances would you consider doing this?
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If you have cash you want to burn and can accept that you may end up loosing money on the flip. I certainly wouldn't do this with high interest private or hard money. You also want to make sure your profit margins are big enough to support a large market shift. Definitely don't get into a 500,000 flip to try to make 20,000.
If the market crashes the day after you finish your rehab, would you be willing to take a loss on the property, could it make sense as a rental, could you hold it for an extended period of time or move into it should you not be able to sell it or rent it out? Have multiple "outs" should the market change mid-flip.